While labour costs in Lithuania rose at among the fastest rates in the European Union in the first quarter of 2016, Lithuanians still receive some of the lowest pay packets in Europe.
Lithuanians along with Bulgarians, Romanians and Latvians receive the lowest earnings in the EU according to Eurostat data.
In the first quarter of 2016 hourly labour costs rose fastest in Romania (10.4%), Bulgaria (7.7%), Estonia (6.9%), Lithuania (6.1%) and Latvia (4.7%). Labour costs fell in Italy (-1.5%) and Cyprus (-0.3%).
Hourly labour costs in the eurozone and the EU during the first quarter of this year grew by 1.7% compared to the same period last year, Eurostat said.
Nordea chief economist Žygimantas Mauricas said that taxation on labour would be the key to catching up with other European countries regarding labour costs and stressed that wages that rose too rapidly could have a negative effect on Lithuanian businesses‘ competitiveness.